Ageas H1 profit up 17% amid tough conditions
The company’s net profit was £49.1m in H1 2013, compared with £41.9m in the same period last year and the combined operating ratio improved by 0.3 percentage points to 98.5 per cent.
Total income was up 2.9 per cent to £1.1bn (H1 2012: £1bn) and non-life gross written premiums increased by 3.3 per cent to £936.5m (H1 2012: £906.3m).
The improvements came despite an 11.6 per cent drop in revenue from the retail broking arm, a 29.3 per cent cut in commercial and special risks GWP and a 74 per cent drop in profits at Tesco Underwriting.
Ageas’s motor book also shifted into an underwriting loss, reporting a COR of 100.7 per cent (H1 2012: 96.4 per cent).
Ageas UK chief executive Andy Watson said: “The positive trend in profit and overall improving performance in our combined ratio has continued to half year and underlines that Ageas remains in good shape.
“The motor market, where prices are reducing, is competitive and challenging, but our focus is on profitable growth and we will continue to adopt a disciplined approach. The integration of Groupama into Ageas Insurance is going well and we expect to complete the legal and regulatory process by the end of the year.”
Ageas’s retail broking businesses, which include RIAS, Castle Cover, Kwik Fit Financial Services and Ageas Insurance Solutions, brought in revenue of £93m in the first half of 2013, down 11.6 per cent on the £105.1m they made in the same period of 2012.
Ageas said the drop reflected “a tough and highly competitive environment”.
Despite the fall, retail broking profits were up 19 per cent to £14.6m (H1 2012: £12.3m).
Ageas cut its commercial and special risks GWP by 29.3 per cent to £59.7m (H1 2012: £81.8m).
The company said this reflected “a continued focus on profitability.”
